Eyeing Gas Boom In China

With China seeking to boost its production of unconventional gas supplies to meet Asia’s growing energy needs, GE Power & Water’s Distributed Power business and Chinese drill rig manufacturer HongHua Group signed a three-year agreement for GE to supply its Waukesha VHP gas engines to power drill rigs used in new shale gas projects.

The Waukesha gas engines will be fuelled by on-site field gas or with commercial grade gas to generate 2.8 to 3 MW of on-site power. GE said that the engines can run on almost any gaseous fuel from 950 to 2600 BTU – this includes everything from hot field gases, commercial grade gas, LNG, CNG and up to HD-5 propane. By utilizing field gas, drill rig operators will be able reduce their fuel transportation costs and optimize rig availability.

Additionally, NOx emissions can be reduced by as much as 95% when powered by GE’s Waukesha VHP 7044GSI or a GE Jenbacher J320 gas engine running on 100% natural gas compared to a typical diesel engine, the company said.

GE plans to begin shipping the Waukesha units to China in May 2014, and the first pilot rig is scheduled to begin operation in September 2014.